O2 have announced new pricing that will take affect from the 31st March 2011 which will see prices increase by a small amount for most users whilst some may see a large price rise. This follows the recent price rises that customers have faced due to the VAT increased to 20%. Some users may be slightly miffed at an increase so soon after the VAT rise but this is to help them continue with investment.
"The use of the internet has changed dramatically in recent years, and in order for us to continue to give you the level of service that you'd expect from us we need to continue to invest in our network to keep up with demand.
Since launching Home Broadband and Home Phone we have maintained the same price levels across our packages whilst offering market leading products with unlimited or very generous download levels; however we cannot continue to maintain this service level at the same price in the current climate. Whilst the prices are increasing, we still remain competitive against other Internet Service Providers. We're always striving to give you a great customer experience."O2 Statement
Users on older unlimited packages are seeing higher price rises to bring them more in to line with the existing packages. O2 say this is due to the higher costs involved of offering these unlimited packages.
|Old Prices - O2 mobile users||Old Prices - not on O2||New Prices - O2 mobile users||New Prices - not on O2|
|The All Rounder||£12.25||£17.36||£12.50||£17.50|
Users on the Access product will see the price increase by around £5. This is the 'national' product which is offered where O2 have not unbundled the telephone exchange to provide broadband services. The large increase is reportedly due to the product being sold at a loss previously, and the new price reflects the true cost of providing this option.
Home Phone prices are also changing. The line rental charge is actually dropping from £7.66 to £7.50, but there will be an increase which offsets this of £2 to £2.50 for the evening and weekend call package, and £5.11 to £6 for customers with an anytime call package.